The price of gold has recently lost its momentum and dropped below the $1,900 mark in yesterday's trading session. This decline is believed to be caused by the rise in US Treasury bond yields, reaching approximately 4.3% after a temporary adjustment. As a result, XAUUSD has shifted into a downward trend.
The ability for gold to maintain its value may face challenges due to concerns about China's weakening economic prospects. Additionally, the strong performance of the US economy has led to an increase in US Treasury bond yields, which is strengthening the US dollar (USD). The upward movement of USD could potentially exert downward pressure on gold prices.
The ability for gold to maintain its value may face challenges due to concerns about China's weakening economic prospects. Additionally, the strong performance of the US economy has led to an increase in US Treasury bond yields, which is strengthening the US dollar (USD). The upward movement of USD could potentially exert downward pressure on gold prices.
Comment:
The CME FedWatch tool shows that investors are betting on a 37% chance of another rate hike in 2023 and a 58% chance that the Fed will leave rates unchanged for the rest of 2023.
